How to Find and Buy Your Dream Home in Retirement

Moving late in life is a daunting task, but there are lots of reasons why it’s a good idea. Relocating can help seniors reduce living costs, reconnect with relatives, and even maintain independence in old age. With a clear goal and a plan to get there, buying a new home in retirement can be manageable, too.

Assess Your Needs

Before you start house-hunting, spend some time thinking about what you want in a new home. Do you want to relocate to a smaller, more manageable home now that your kids have families of their own? Do you want to move to a community with senior-friendly amenities like walkable neighborhoods, community events, and a robust healthcare system? Do you need accessibility features due to a disability or age-related decline in mobility? There are many reasons why people choose to move late in life. Finding the right home means being connected with your reasons.

Determine Your Budget

Once you know what you need, it’s time to figure out what you can afford. If you’re already a homeowner, find out how much your house will sell for. Avoid the trap of estimating your home’s value; while your home holds cherished memories for your family, older homes can struggle to compete with new construction. To determine a reasonable price for your home, look at the selling price of similarly-sized homes in the same neighborhood, built around the same time, and in similar condition. A realtor can do the legwork to determine the right asking price for your home.

From there, figure out how much you want to spend on your new home. Maybe you want to downsize to a more affordable house and bank the rest for vacation travel, or perhaps your priority is upgrading to a more accessible residence for aging in place, even if it means taking out a mortgage.

Find Financing

If your new home requires financing, make sure you know where the funds will come from. Some seniors think they can’t get a mortgage due to their age, but lenders can’t discriminate based on age. Furthermore, retirement funds and Social Security payments are considered qualifying income for a mortgage. Beyond a traditional mortgage, seniors have several options when it comes to financing a new home:

Home Equity Conversion Mortgage for Purchase: Also known as a reverse mortgage for purchase, this program allows senior homebuyers 62 and older to apply a large down payment and skip mortgage payments for as long as they live in the home.
FHA loan: Federal Housing Administration-backed loans offer low interest rates with flexible qualifications for seniors who may not qualify for a traditional mortgage.
VA Loans: VA loans are a special type of home mortgage reserved for active military members and veterans. These home loans are guaranteed by the U.S. Department of Veterans Affairs and offered by participating approved lenders.
Conventional Loan Programs - Tthe best way to learn about your mortgage financing options is to speak with a knowledgable loan officer. Our experts have in-depth knowledge of the various mortgage options available. home buyers and homeowners. Please contact us with any questions you have.

Plan the Move

By the time you’ve made an offer on the perfect house, it’s time to start planning the move. Decide if you’ll need to downsize to fit comfortably into the new home. A printed floor plan helps you determine what furniture and decorations to bring. If you’re getting rid of anything, consider that the effort to sell secondhand goods often isn’t worth the money it earns. Assess what’s worth selling, like antiques or fine art, and donate or gift the rest. Some charities may pick up donations, saving you time for more important things.

Get quotes from professional movers; while family and friends may be willing to help, the process is faster and less stressful with skilled help. Decide whether you’ll spring for a full-service move or pack yourself.

The decision to move in retirement is highly personal, and ultimately the right home will depend on a senior’s unique context. But for any senior, making a dream home a reality means starting with a plan.

Hazel Bridges is the creator of AgingWellness.org, a website that aims to provide health and wellness resources for aging seniors. She’s a breast cancer survivor. She challenges herself to live life to the fullest and inspire others to do so as well.

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